1
PROJECT ON
FMCG INDUSTRY ANALYSIS
Submitted to – Prof. Megha Jain
Submitted by – Shreeya Jain (0141)
Sec “A”
2
Table of content Page No
1. Introduction (3)
2. Evolution of FMCG in India (3)
3. Regulators/ acts Governing FMCG (3)
4. Major players in FMCG(India) (3)
5. Products and services in FMCG (4)
6. Revenue model of FMCG (4)
7. Growth of FMCG in India (5)
8. Value chain of FMCG (6)
9. Market capitalization of top 10 FMCG company in India (6)
10. Market share of FMCG company in India (7)
11. Competing industry of FMCG (7)
12. Performance of FMCG globally (8)
13. Major player in FMCG at global level (8)
14. Global factors impact FMCG market (9)
15. Company I wish to work (9)
16. PESTAL Analysis of ITC (10)
17. Reference (11)
3
Introduction-
This FMCG also known as consumer packaged goods. It consists
household care such as household cleaners, personal care such as hair
care, skin care, cosmetics, feminine hygiene, perfumes, and food and
beverages such as snacks & bakery, chocolates, tea, coffee, dairy
products and so on. (No external source)
Evolution (India)-
The journey of FMCG had started with bros. India Ltd in 1933. The
evolution is considered from 1950’s as Lever Bros. India Ltd. Converted
into Hindustan Lever Ltd. Many major players came between 1950 to 21st
century. (No external source)
Regulators/acts governing FMCG (consumer awareness in FMCG sector-
LEXOLOGY.IN)
1. Consumer protection council- established in 2004 this act ensure
that all the industry which is providing product should match the
quality standard set by them. This standard is set to safeguard the
interest of consumers.
2. National agency for food and drug administration and control- is
established in 1999 to direct and control manufacture, sale and use
of food, cosmetic, packaged waters.
India’s FMCG Industry-(major players in India)
India’s FMCG Industry is mainly the mixture of this companies (No
external source)
ITC Limited Dabur India Marico Patanjali
4
Nestle India Godrej Britannia
Industries
HUL
Products and services which FMCG market is providing- (master list of
FMCG product-Brandyuva.in)
1. Household product (floor cleaner, toilet cleaner etc.)
2. Skin care (fairness cream, lotions etc.)
3. Oral care (toothpaste, mouthwash etc.)
4. Hair care (shampoo, hair oil etc.)
5. Cosmetic (face cream, lipstick etc.)
6. Health products (balm, ointment etc.)
7. Dairy product (milk, buttermilk, curd etc.)
8. Bakery product food (cookies, biscuits etc.)
9. Paper product (tissue, sanitary pads etc.)
10. Confectionery product (candy, chocolates etc.)
11. Stationary product (pen, notebook etc.)
12. Tobacco product (cigarette, cigar, bidi etc.)
13. Industry product (exterior paints etc.)
14. Beverages (tea, coffee, bottled water etc.)
15. Natural product (wheat, rice etc.)
Revenue model of industry- India (IBEF REPORT-2018)
1. Hair care- 23%
2. Food-19%
3. Health-16%
4. Oral-15%
5. Personal care- 6-7%
6. Beauty, cosmetic and grooming-6.5%
5
7. Home care-9%
8. Skin care-8%
Performance of FMCG in India – (Growth rate)
1. Performance in terms of increasing revenue/ sales - (image/ trends in
FMCG revenue in India) (US$billion)-2018
2011 31.6
2012 33.3
2013 35.7
2014 38.8
2015 43.1
2016 49
1017 57.4
2018 68.4
Above data is showing the overall revenue on yearly basis. This data is
calculated after adding the overall revenue of all the FMCG Company in
India.
2. Performance on the basis of market share in India-
(TechsciResearch)-2018
2011 31.56
2012 33.34
2013 35.68
2014 38.82
2015 43.08
2016 49.00
2017 57.35
2018 68.38
6
India’s FMCG have 68.38 shares in market rest shares are textile, food
processing, cement, steel, software, mining and petroleum etc.
India has merely 0.68% share of global FMCG market which is expected
to be increased in next 5 years as economic factors are improving such
as per capita income
Value chain of FMCG- ( slide share/ FMCG PPT/understanding of value
chain of FMCG
1. HUL has highly customized distribution model. As it has 2000
supplier, 40 manufacturing plants in India.
2. MARICO achieve value chain by more than million distribution in
India, it has strong control on raw material sourcing, and they set
one stop shop in Kochi so farmers sell coconuts directly in this
center.
3. ITC achieve upselling by utilizing existing channels they use channel
to sell matchbox, agarbatti, sun feast(mainly for product selling)
4. ASIAN paint is achieving by adopting modern technology
5. NESLE has already achieved with better veterinary product (dog
etc.)
TOP 10 FMCG companies in India by market capitalization in India
(blogger-munesh meena- 28 September 2018) market cap- no
of share*current market price (RS-CR.)
1. HUL-347,999.79
2. Godrej consumers-78,533.02
3. Dabur India- 75,525.47
4. Marico- 42,972.88
5. P and G-31,396 (least )
7
6. Colgate-29,510.44
7. Emami- 22,394.89
8. Gillette India- 21,677.32
9. Godrej India- 17,394.26
10. Bajaj-6,082.90
Market share of major players- (NSENIFTY
FMCG-SEPTEMBER 28, 2018)
Share picked by consumer demand in rural and urban India
1. nestle- 27.9%
2. Britannia- 21.6%
3. Hindustan uniliver -36%
4. ITC-12%
5. Godrej-5.14%
6. dabur India ltd.- 4.26%
7. Marico ltd- 3.04%s
COMPETING INDUSTRY WITH FMCG- (
Quora- Mr. vinit Agarwal, director of AISEN)
Consumer durable is competing industry, 83% loans grow in FY18 it is
showing increasing demand which is helping it in becoming a growing
and competing industry. It is growing 15% per year. FMCG comes at 4th
position contributing to GDP and FMCD comes at 5. Market of FMCD
reached to 3.15 trillion in 2017
Performance of FMCG globally (FMCG – PWC reports)
8
Demand
for
household
and
personal
care (%)
2011 2012 2013 2014 2015
Asia and
Australia
5.9 7.0 5.9 5.8 5.3
China 12.0 12.7 9.7 9.3 7.3
Hong
Cong
8.6 6.8 3.7 3.4 3.0
India 11.1 9.9 10.5 9.8 9.8
Japan -0.6 2.4 1.5 1.4 1.0
Based on it is showing that Asia, Australia, Hong Cong and japan growth
rate has decreased and growth rate in china and India has increased.
1. showing performance of FMCG globally on the basis of net sales-
(Amt in us dollars) (Data presented in statista 2017) –
2. this companies are also major players globally in FMCG industry
Nestle recorded-91187, Procter and gambler-64453, PepsiCo- 63,525,
uniliver-60,531, Ab- inbev-56,444, JBS-49626, Tyson Foods-38260, cola-
cola-35410, loreal-29326, phillip-28748, danone-27808, kraft Heinz-
26232, British American -26116, Mondale- 25896, Heineken-24665.
How global factors impact FMCG Market – (www.businesstoday.com)
article published 20 Oct. 2018
This are the external factors which affecting the FMCG market.
9
1. How rupee depreciation is affecting – It affecting the raw material
price. Raw material which FMCG market use is getting costly which
result in increase in cost of production and ultimately prices of
products has increased. Not much impact on sales but it affected
their sales little as price increase consumer are moving toward
cheaper price brand. It is affecting FMCG’S profit margin little bit.
2. How crude oil is affecting FMCG market – crude oil is influencing
inflation in India. Inflation result in increasing input cost which
ultimately increase price of the product it is affecting FMCG’s profit
margin.
Company I wish to work
This FMCG industry is offering sales related jobs and sales executive jobs
many experts are also appointed to know the customer taste.
As far the trend is changing many manager will appoint specially to deal
with the factors which are uncontrollable they will be work as advisor or
expert as sudden for example this crude price rises so in future this
expert will work as advisor
Company such as ITC, Nestle, HUL, Marico, Britannia, P and G are
providing such jobs
Pestel analysis of ITC (Indian tobacco Company) (WWW.ITC.IN)
10
1. Political analysis- as ITC is facing strict rules and regulation
regarding communicating and consumption.
2. Economic analysis—it is major exporter from India. India comes
under top 3 countries it is giving major contribution in this.
3. Social analysis- public are concerning towards their health as
consumption of tobacco causing health problems so they are trying
to ignore using it.
4. Technological analysis- supply chain management and ITC have
moving toward better inventory control and logistics support.
5. Environment analysis- all the industries not only itc is polluting the
environment
6. Legal analysis- Ban on smoking in public place from 2018 is
decreasing their sales and profit
11
References
Introduction (No external source)
Evolution of FMCG in India (No external source)
Regulators/ acts Governing FMCG (consumer awareness in FMCG
sector-LEXOLOGY.IN)
Major players in FMCG (India) (No external source)
Products and services in FMCG (master list of FMCG product-
Brandyuva.in)
Revenue model of FMCG India (IBEF REPORT-2018
Growth of FMCG in India (TechsciResearch)-2018
Value chain of FMCG - (slide share/ FMCG PPT/understanding of value
chain of FMCG
Market capitalization of top 10 FMCG company in India (blogger-
munesh meena- 28 September 2018)
12
Market share of FMCG Company in India (NSENIFTY FMCG-SEPTEMBER
28, 2018)
Competing industry of FMCG (Quora- Mr. vinit Agarwal, director
of AISEN)
Performance of FMCG globally (Data presented in statista 2017) –
Major Player in FMCG at global level (Data presented in statista 2017)
–
Global factors impact FMCG market – (www.businesstoday.com) article
published 20 Oct. 2018
Company I wish to work (No external source)
PESTAL Analysis of ITC (WWW.ITC.IN)
13

FMCG Industry Analysis

  • 1.
    1 PROJECT ON FMCG INDUSTRYANALYSIS Submitted to – Prof. Megha Jain Submitted by – Shreeya Jain (0141) Sec “A”
  • 2.
    2 Table of contentPage No 1. Introduction (3) 2. Evolution of FMCG in India (3) 3. Regulators/ acts Governing FMCG (3) 4. Major players in FMCG(India) (3) 5. Products and services in FMCG (4) 6. Revenue model of FMCG (4) 7. Growth of FMCG in India (5) 8. Value chain of FMCG (6) 9. Market capitalization of top 10 FMCG company in India (6) 10. Market share of FMCG company in India (7) 11. Competing industry of FMCG (7) 12. Performance of FMCG globally (8) 13. Major player in FMCG at global level (8) 14. Global factors impact FMCG market (9) 15. Company I wish to work (9) 16. PESTAL Analysis of ITC (10) 17. Reference (11)
  • 3.
    3 Introduction- This FMCG alsoknown as consumer packaged goods. It consists household care such as household cleaners, personal care such as hair care, skin care, cosmetics, feminine hygiene, perfumes, and food and beverages such as snacks & bakery, chocolates, tea, coffee, dairy products and so on. (No external source) Evolution (India)- The journey of FMCG had started with bros. India Ltd in 1933. The evolution is considered from 1950’s as Lever Bros. India Ltd. Converted into Hindustan Lever Ltd. Many major players came between 1950 to 21st century. (No external source) Regulators/acts governing FMCG (consumer awareness in FMCG sector- LEXOLOGY.IN) 1. Consumer protection council- established in 2004 this act ensure that all the industry which is providing product should match the quality standard set by them. This standard is set to safeguard the interest of consumers. 2. National agency for food and drug administration and control- is established in 1999 to direct and control manufacture, sale and use of food, cosmetic, packaged waters. India’s FMCG Industry-(major players in India) India’s FMCG Industry is mainly the mixture of this companies (No external source) ITC Limited Dabur India Marico Patanjali
  • 4.
    4 Nestle India GodrejBritannia Industries HUL Products and services which FMCG market is providing- (master list of FMCG product-Brandyuva.in) 1. Household product (floor cleaner, toilet cleaner etc.) 2. Skin care (fairness cream, lotions etc.) 3. Oral care (toothpaste, mouthwash etc.) 4. Hair care (shampoo, hair oil etc.) 5. Cosmetic (face cream, lipstick etc.) 6. Health products (balm, ointment etc.) 7. Dairy product (milk, buttermilk, curd etc.) 8. Bakery product food (cookies, biscuits etc.) 9. Paper product (tissue, sanitary pads etc.) 10. Confectionery product (candy, chocolates etc.) 11. Stationary product (pen, notebook etc.) 12. Tobacco product (cigarette, cigar, bidi etc.) 13. Industry product (exterior paints etc.) 14. Beverages (tea, coffee, bottled water etc.) 15. Natural product (wheat, rice etc.) Revenue model of industry- India (IBEF REPORT-2018) 1. Hair care- 23% 2. Food-19% 3. Health-16% 4. Oral-15% 5. Personal care- 6-7% 6. Beauty, cosmetic and grooming-6.5%
  • 5.
    5 7. Home care-9% 8.Skin care-8% Performance of FMCG in India – (Growth rate) 1. Performance in terms of increasing revenue/ sales - (image/ trends in FMCG revenue in India) (US$billion)-2018 2011 31.6 2012 33.3 2013 35.7 2014 38.8 2015 43.1 2016 49 1017 57.4 2018 68.4 Above data is showing the overall revenue on yearly basis. This data is calculated after adding the overall revenue of all the FMCG Company in India. 2. Performance on the basis of market share in India- (TechsciResearch)-2018 2011 31.56 2012 33.34 2013 35.68 2014 38.82 2015 43.08 2016 49.00 2017 57.35 2018 68.38
  • 6.
    6 India’s FMCG have68.38 shares in market rest shares are textile, food processing, cement, steel, software, mining and petroleum etc. India has merely 0.68% share of global FMCG market which is expected to be increased in next 5 years as economic factors are improving such as per capita income Value chain of FMCG- ( slide share/ FMCG PPT/understanding of value chain of FMCG 1. HUL has highly customized distribution model. As it has 2000 supplier, 40 manufacturing plants in India. 2. MARICO achieve value chain by more than million distribution in India, it has strong control on raw material sourcing, and they set one stop shop in Kochi so farmers sell coconuts directly in this center. 3. ITC achieve upselling by utilizing existing channels they use channel to sell matchbox, agarbatti, sun feast(mainly for product selling) 4. ASIAN paint is achieving by adopting modern technology 5. NESLE has already achieved with better veterinary product (dog etc.) TOP 10 FMCG companies in India by market capitalization in India (blogger-munesh meena- 28 September 2018) market cap- no of share*current market price (RS-CR.) 1. HUL-347,999.79 2. Godrej consumers-78,533.02 3. Dabur India- 75,525.47 4. Marico- 42,972.88 5. P and G-31,396 (least )
  • 7.
    7 6. Colgate-29,510.44 7. Emami-22,394.89 8. Gillette India- 21,677.32 9. Godrej India- 17,394.26 10. Bajaj-6,082.90 Market share of major players- (NSENIFTY FMCG-SEPTEMBER 28, 2018) Share picked by consumer demand in rural and urban India 1. nestle- 27.9% 2. Britannia- 21.6% 3. Hindustan uniliver -36% 4. ITC-12% 5. Godrej-5.14% 6. dabur India ltd.- 4.26% 7. Marico ltd- 3.04%s COMPETING INDUSTRY WITH FMCG- ( Quora- Mr. vinit Agarwal, director of AISEN) Consumer durable is competing industry, 83% loans grow in FY18 it is showing increasing demand which is helping it in becoming a growing and competing industry. It is growing 15% per year. FMCG comes at 4th position contributing to GDP and FMCD comes at 5. Market of FMCD reached to 3.15 trillion in 2017 Performance of FMCG globally (FMCG – PWC reports)
  • 8.
    8 Demand for household and personal care (%) 2011 20122013 2014 2015 Asia and Australia 5.9 7.0 5.9 5.8 5.3 China 12.0 12.7 9.7 9.3 7.3 Hong Cong 8.6 6.8 3.7 3.4 3.0 India 11.1 9.9 10.5 9.8 9.8 Japan -0.6 2.4 1.5 1.4 1.0 Based on it is showing that Asia, Australia, Hong Cong and japan growth rate has decreased and growth rate in china and India has increased. 1. showing performance of FMCG globally on the basis of net sales- (Amt in us dollars) (Data presented in statista 2017) – 2. this companies are also major players globally in FMCG industry Nestle recorded-91187, Procter and gambler-64453, PepsiCo- 63,525, uniliver-60,531, Ab- inbev-56,444, JBS-49626, Tyson Foods-38260, cola- cola-35410, loreal-29326, phillip-28748, danone-27808, kraft Heinz- 26232, British American -26116, Mondale- 25896, Heineken-24665. How global factors impact FMCG Market – (www.businesstoday.com) article published 20 Oct. 2018 This are the external factors which affecting the FMCG market.
  • 9.
    9 1. How rupeedepreciation is affecting – It affecting the raw material price. Raw material which FMCG market use is getting costly which result in increase in cost of production and ultimately prices of products has increased. Not much impact on sales but it affected their sales little as price increase consumer are moving toward cheaper price brand. It is affecting FMCG’S profit margin little bit. 2. How crude oil is affecting FMCG market – crude oil is influencing inflation in India. Inflation result in increasing input cost which ultimately increase price of the product it is affecting FMCG’s profit margin. Company I wish to work This FMCG industry is offering sales related jobs and sales executive jobs many experts are also appointed to know the customer taste. As far the trend is changing many manager will appoint specially to deal with the factors which are uncontrollable they will be work as advisor or expert as sudden for example this crude price rises so in future this expert will work as advisor Company such as ITC, Nestle, HUL, Marico, Britannia, P and G are providing such jobs Pestel analysis of ITC (Indian tobacco Company) (WWW.ITC.IN)
  • 10.
    10 1. Political analysis-as ITC is facing strict rules and regulation regarding communicating and consumption. 2. Economic analysis—it is major exporter from India. India comes under top 3 countries it is giving major contribution in this. 3. Social analysis- public are concerning towards their health as consumption of tobacco causing health problems so they are trying to ignore using it. 4. Technological analysis- supply chain management and ITC have moving toward better inventory control and logistics support. 5. Environment analysis- all the industries not only itc is polluting the environment 6. Legal analysis- Ban on smoking in public place from 2018 is decreasing their sales and profit
  • 11.
    11 References Introduction (No externalsource) Evolution of FMCG in India (No external source) Regulators/ acts Governing FMCG (consumer awareness in FMCG sector-LEXOLOGY.IN) Major players in FMCG (India) (No external source) Products and services in FMCG (master list of FMCG product- Brandyuva.in) Revenue model of FMCG India (IBEF REPORT-2018 Growth of FMCG in India (TechsciResearch)-2018 Value chain of FMCG - (slide share/ FMCG PPT/understanding of value chain of FMCG Market capitalization of top 10 FMCG company in India (blogger- munesh meena- 28 September 2018)
  • 12.
    12 Market share ofFMCG Company in India (NSENIFTY FMCG-SEPTEMBER 28, 2018) Competing industry of FMCG (Quora- Mr. vinit Agarwal, director of AISEN) Performance of FMCG globally (Data presented in statista 2017) – Major Player in FMCG at global level (Data presented in statista 2017) – Global factors impact FMCG market – (www.businesstoday.com) article published 20 Oct. 2018 Company I wish to work (No external source) PESTAL Analysis of ITC (WWW.ITC.IN)
  • 13.